Slide 1: A Leading National Supplier of a Wide Variety of Components for RVs and Manufactured Homes
A Leading National Supplier of a Wide Variety of DW Components for RVs and Manufactured Homes =
Slide 2: Forward-looking statements
This presentation contains certain “forward-looking statements” with respect to our financial condition, results of operations, business strategies, operating efficiencies or synergies, competitive position, growth opportunities, acquisitions, plans and objectives of management, markets for the Comp
Slide 3: Overview
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Slide 4: Drew's Segments — LTM 6/2014
> Drew’s Segments — LTM 6/2014 Say at
Slide 5: Drew's Products — Components for RVs and Manufactured Homes
> Drew’s Products — Components for RVs and Manufactured Homes Net Sales of $1,083 Million for the 12 Months Ended June 30, 2014 Red RV tees Seu and ier Chassis Paris: MH Chassis and $118 million $519 million Chassis Paris: $37 million OtherProducts: J) $74 million 1%, Axles and Suspension Products:
Slide 6: Financial Performance
> Financial Performance Net Sales === RV Segment net sales © MH Segmentnet sales m= EBITDA EBITDA 1,200 yes ‘ Net Sales and EBITDA ) (in mitions) Loe $1,016 $1,000 y, $901 | s100 coy $79 x $669 RM, S069 $681 + $75 ¥, s $573 $600 cert Pe F Lad | Va 509 pes i) saag 402 $398 $400 $354 $574] { $325 | a7
Slide 7: Management Team
ool BL INDUSTRIES INCORPORATED MANAGEMENT TEAM JASON LIPPERT, CEO > 19+ years with Drew SCOTT MERENESS, PRESIDENT > 19+ years with Drew JOE GIORDANO, CFO & TREASURER > 11+ years with Drew > Average tenure of senior management 13+ years with Drew
Slide 8: RV Industry
RV Industry
Slide 9: Towable RVs and Motorhomes
Towable RVs (Approximately 81% of Drew's RV Segmentnet sales) Motorhomes (Approximately 6% of Drew's RV Segmentnet sales) 5 eee of industry 2013 unit sales of 2013 wholesale dollar sales, or $8.1 billion Retail cost $4,000 to $100,000 per unit. Average about $29,000 of industry 2013 unit sales of 20
Slide 10: Campers statistics
® 54,, 3.414000 Camp EveryOther Year Tent Campers 3414000 Tagt = / 21,340,800 23% “my RV Campers 9,089,600 aA % ; Active Campers / 39,520,000- ‘Camp Every Other Year (23%) 1,727,000 Cabin Campers 7,508,800 * All other (4%) 1,580,800, Statistics provided by KOA 2014
Slide 11: Typical RV family vacation is less expensive
+ Typical RV family vacation is 23 to 59 percentless expensive for a family of four College and NFL football games NASCAR events More active, shorter, “greener”, & family oriented vacations The number of consumers between the ages of 55 and 70 is projected to total 56 million by 2020, 27 percent hig
Slide 12: RVs - Industry Wholesale Shipments
> RVs - Industry Wholesale Shipments Approximately 81% of Drew's RV Segment net sales are for Travel Trailer and 5" Wheel RVs 500 = Motorhomes Industry units in thousands} Other Towables Travel Trailers @ 5th Wheels 3g4 391 od 370 353 oun ot 56 aH — 55 47 300 = 257 i 2 a = 166 29 = 281 pe) a) Bg art
Slide 13: RV Industry Trends
> RV Industry Trends Units 300 275 250 226.4 225 200 “195.1 175 125 100 Travel Trailer and 5 Wheel RVs, Drew's primary RV market Wholesale == Retail (Units in thousands} 268.0 242.9 Bey 2128 222.8 AR 206.0 186.0 164.3 161.1 148.6 138.3 135.7 137.6 2008 Dealer Inventory (41.3) Change 2009 2010 2011 2
Slide 14: Number of U.S. Households that Own an RV
> Number of U.S. Households that Own an RV (in Millions) 10 6 La LJ |_| 4 | = = Ee = = = L 1980 1984 1988 1993 1997 2001 2005 2011 Statistics provided by RVIA Industry Profile 2013.
Slide 15: Demographics
> Demographics — 2011) 2005 2011 Number of U.S. households that own an RV 7.9 milion 8.9 milion Household ownership rates of RVs 80% 85% Average age of all RVs 12.7 years 14.2years Average time consumers have owned their 6.6 years 8.4 years current RV Age of typical RV owner 49 years 48 years Averag
Slide 16: Our RV Segment
ur RV Segment ; SECTION @
Slide 17: RVs - Industry Wholesale Shipment Compared to Drew's Performance
» RVs - Industry Wholesale Shipment (Compared to Drew’s Performance) Approximately 81% of Drew’s RV Segment net sales are for Travel Trailer and 5" Wheel RVs 800 $1,000 {industry units in thousands, net sales in millions} m $965 IL 700 "== Motorhomes m 5894 | $900 Other Towables | Travel Trailers &
Slide 18: Content Per New Towable RV
> Content Per New Towable RV - Approximately 81% of RV Segment net sales are for Travel Trailer and Fifth-Wheel RVs - 100% market share in existing e products would yield an estimated 7 2! $5,000 per Towable RV noe $2,337 - Growth in RV “features” drives content increases il RVSegment 2001 2002 2003
Slide 19: Content Per New Motorhome RV
> Content Per New Motorhome RV -Approximately 6% of RV $1,252 $1,309 Segment net sales are for oo $1,227 Motorhome RVs A 2a - 100% market share in a existing products would yield ei Pane) an estimated $5,000 per gore Motorhome RV ox $199 $3 —_—_ 2007 RV Segment 2004 2009 2010 2011+ -2012-—«2013.:«LT
Slide 20: RV Segment Net Sales by Type
> RV Segment Net Sales by Type LTM 6/14- $965 Million $98 million $29 million 10% $55 million 3% 6% LTM 6/13- $844 Million $84 million : $23 million 10% $41 million 3% «5% $783 million 81% $696 million 82% m Travel Trailer & Fiftn-Wheel - OEM m™ Motorhome - OEM Aftermarket ~ Adjacent Industries
Slide 21: Manufactured Housing Industry
SECTION @ Manufactured Housing Industry
Slide 22: Manufactured Housing (MH) Market
> Manufactured Housing (MH) Market ” Cost per sq. ft. is $41 for MH vs: $83 for site-built homes a _ Average retail price of $60,600 for a 1,470 sq. ft. MH ” 9 million manufactured homes acrossithe U.S/ ” Improved quality, appearance and safety ” Studies have shown MHs built since 1995 sustain no mo
Slide 23: Manufactured Housing — Industry Production
> Manufactured Housing — Industry Production Industry Units 24) [Industry unitsin thousands} _ Multi-Sections === Single-Section 493 62 2001 2002 2003 2004 2005 2006 2007 2008 ©2009 2010 2011 2012 2013 LIM MH Share 75% 78% 79% 74% ©«—«GSH:« TH :«—«GB«GIH:«IKH_CSCSOM 51% «SIH 58% Held by Muti-Section
Slide 24: MH: Favorable Factors
> MH: Favorable Factors a” Industry Demand > Demand for quality, affordable housing is likely to increase > Baby boomers retiring in increasing numbers > Dealer and manufacturer inventory levels are reasonable > Availability of financing is still an issue, as is the weak overall housing market a Dre
Slide 25: Our Manufactured Housing Segment
SECTION @ Our Manufactured Housing Segment
Slide 26: Manufactured Housing — Industry Production Compared to Drew's Performance
> Manufactured Housing — Industry Production (Compared to Drew's Performance) Industry i PA. Drew's Gag (Industry units in thousands, net sales in millions) Net Saiee _ Mulli-Sections === Single-Section Drew's MH net sales 250 $250 $221 $999 193 + $200 $142 $150 $120 $122 $117 $111 $100 + $50 $0 200
Slide 27: Content Per New Manufactured Home
> Content Per New Manufactured Home 100% market share in existing products $1,666 would yield an estimated $4,500 perhome 7 : $1,450 $1,429 Gen $1493 $1,465 $1,330 $1,332 Affordability of the homes es hil $1,249 constrains content growth $871 $796 $663 2001 2002 2003 2004 2005 2006 2007 2008 2009 20
Slide 28: MH Segment Net Sales by Type
> MH Segment Net Sales by Type LTM 6/14- $117 Million LTM 6/13 - $122 Million $77 million 66% $80 million 66% OEM Aftermarket m Adjacent industries
Slide 29: Strategy
Strategy
Slide 30: Business Strategy
> Business Strategy a Maximize profitability and return on assets through > New product introductions > Market share growth > Operational efficiencies > Diversification to related industries > Strategic acquisitions a” This strategy accomplished through > Outstanding customer service > Motivating ma
Slide 31: Expanding Our Growth Potential
> ae ng Our Growtn Frotentia 7 Trailers and Buses 100 million 2011 — Doors Windows for Truc! quipment, Utility. ictured Housing Aftermarkets $ 10 million eplacement Parts to the RV and Mani International During the third quarter of 2013, the Company hired a spend time in Australia, Europe and China,
Slide 32: Acquisition Criteria
> Acquisition Criteria a Drew is a disciplined and patient acquirer a Gain market share or add products from other suppliers through acquisitions a Seek products or technologies that we can expand through our nationwide customer base and factory network a Become an even more extensive supplier to ou
Slide 33: New Products & Acquisitions
> New Products & Acquisitions Acquire TRAIL AR: Adding RV suspension products Acaure Coact St ‘Adding electric steps for motorhomes AcaurRE HAPPUAC: ‘Adding patented bed AcaurRE lifts for RVs EXTREME ENGINEERING: Expanding specialty trailer product line Began production of entry doors for 2008 { ACQ
Slide 34: New Products & Acquisitions
> New Products & Acquisitions ACQUIRE pn ACQUIRE MTEC: s ‘Mipstares: ACQUIRE POWER Adding bce aae ‘Adding Tool & GEAR & KWIKEE: components for pay Die and Expanding RV RVs and automation leveling systems customization mobile office, pee capabilities units AcauRE EA slideouts and steps TECHNOLOGIES:
Slide 35: Power Gear & Kwikee
Power Gear & Kwikee (1) Plus contingent consideration payable on future sales.
Slide 36: The Future
> The Future Increasing RV content RV industry growth A a a Demographic tailwind a Expanding into adjacent industries a Affordable housing recovery
Slide 37: Thank You
Jason D. Lippert Chief Executive Officer JasonL@lci1.com THANK YOU | sziveo= . . ScottM@lci1.com For more information contact Joseph S. Giordano Ill CFO & Treasurer Joe@drewindustries.com @ titer www.drewindustries.com @ Youtube www.lci1.com @ Facebook 574-535-1125 2
Slide 38: Supplemental Schedules
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Slide 39: Operating Results — Three Months Ended June 30
> Operating Results Three Months Ended June 30, FINANCIAL (S in millions, except EPS) 2013) 20142) Change Net Sales G) 2872)\"$ 3218) 12% Operating Profit $ 264 $ 31.1 18% % of Sales 9.2% 97% Net Income $ 16.4 $ 19:9. 21% Diluted EPS 710,69) |S. 10:82) 19% (I) Excludes executive succession. Actual 2
Slide 40: Operating Results — Six Months Ended June 30
> Operating Results Six Months Ended June 30, FINANCIAL (S in millions, except EPS) 2013) 20142) Change Net Sales $ 539:8| $ 607.2 12% Operating Profit § <AL2 § 572 39% % of Sales 7.6% 9 AN Net Income $ 25.4 $ 36.1 42% Diluted EPS So 1208)||5$. 1649; 38% lion which was (I) Excludes executive su: . A
Slide 41: RV Segment
RV Segment 8.9%
Slide 42: -4l-
-4l-
Slide 43: Debt Position
> Debt Position FINANCIA Cash and Net Cash feet is ene ead Investments (Debt) YTD Period 12/3110 $ - Se a 12/31/11 $ : $7 $ a Ee 12/31/12 |§ = San OS en es e 12/31/13 $ E $66 $) 8s $ Z os/s0/l4 $22 § me ae (I) On December 28, 2010, the Company paid a special dividend of $1.50 pershare of the Company
Slide 44: Days Sales in A/R and Inventory Turns
Days Sales in A/R" u 13 days 17 days 14 days 16 days 21 days (1) Days Sales in A/R is the most recent month'snet sales divided by accountsreceivable, net, at the end of the period. December3! is the seasonal low point. (2) Inventory Tus is cost of goodssold for the last twelve months divided by aver
Slide 45: Cash Flow
> Cash Flow FINANCIAL PERFORMANCE Acquisitions (16) $174 million Capital expenditures $117 million Special dividends $125 million Stock repurchases $ 2million Total $ 418 million prew
Slide 46: Cash Flow
> Cash Flow mmm Dividends (— Capital Expenditures. FINANCIAL PERFORMANCE $120 (DAcauisitions $120 * Operating Cash Flow $100 $100 $80 gH $80 $60 $é3 $60 Ss $40 30 $40 $20 oe $20 55 $24 $18 s += $0 2009 2010 2011 2012 2013 (1) 2014 YTD Cumulative operating cash flow from 2009 to present [in millions)
Slide 47: Financial Strength
> Financial Strength FINAN RMANCE (12 months en: ) 12/31/10 12/31/11 12/31/12 12/31/13 06/30/14 Return on Equity 11% 11% 13% 16% 18% Return on Assets 9% 9% 10% 12% 13% TetabDept te 0.00 0.00 0.00 0.00 0.06 Equity Le im se 0.00 0.00 0.00 0.00 0.18 (1) EBITDA is operating profit plus depreciation, amo
Slide 48: Reconciliation of Operating Profit to EBITDA
> Reconciliation of Operating Profit to EBITDA FINANCIAL PERFORMANCE LIM (S in millions) 2010 2011-2012, 2013/14 Operating x Profit $45.2 $48.5 | $58.1 $783 $94.2 Depreciation & Aroicion fiz $20 $257 $275 9200 EBITDA $625 $69.0 $83.8 $1058 $1232 Capital Expenditures $10.1 $243 $320 | $326 $33.0
Slide 49: Net Sales and Operating Profit by Segment
_ Net Sales: RV Segment $ 477.2 $ 570. : $ 780.9 MH Segment 95.6 110. 120.2 Operating Profit: RV Segment if A7.2 MH Segment . . 12.4 _ Total Operating Profit 454 $ 48.5 $ $ 893.7 121.9 $ 78.3 $ vase TZ | $ 98.1 9 -43-
Slide 50: Stock Price History
> Stock Price History Drew has 23.6 million shares outstanding and a market capitalization of approximately $1.01 billion as of August 4, 2014 60 7 a 30 $28. $26 $27 $18 1 ae $14. $12 $6 2001 2002 2003 2004 2005 2006 10/5/07 2007 2008 3/9/09 2009 2010 2011 2012 2013 8/4/14 (December 31, unless noted
Slide 51: Analyst Coverage
> Analyst Coverage a” Citi Research > Gregory Badishkanian — (212) 816-2720 a CJS Securities > Dan Moore — (914) 287-7600 a” Sidoti & Company, LLC > Scott Stember — (212) 453-7017 ” Thompson Research Group > Kathryn Thompson — (615) 891-6206